This article is from the Australian Property Journal archive
DEXUS Property Group has put its Finlay Crisp Centre, a three-building, campus-style office complex in the Canberra CBD, on the market.
The complex is being marketed by JLL’s Michael Heather and Rob Sewell via an expressions of interest campaign closing Thursday, September 8, and is expected to realise in excess of $85 million.
The Finlay Crisp Centre occupies an entire city block of 8,844sqm and comprises three adjacent office buildings in CustomsHouse, Allara House and Nara Centre, with a total combined NLA of 29,982 sqm and three street frontages to Constitution Avenue, Allara Street and London Circuit.
The complex is fully occupied and leased to tenants represented by the Commonwealth of Australia and ACT Government until 2019 and 2020 respectively.
Heather said Canberra is currently being assessed as a desirable investment destination by both national and international investors, and there are a number of very active buyers currently seeking core-plus office opportunities.
“The weighted average lease expiry of just over three years provides an immediate secure income stream to ‘AAA’ rated tenants while allowing flexibility to reposition the asset and to improve the income and tenancy profile.
“The Finlay Crisp Centre was designed as a campus-style development that offers tenants outstanding surrounding amenity in the heart of the City, large efficient floor plates, generous car parking ratio and some brilliant views from the upper levels overlooking some of Canberra’s most notable attractions,” Heather said.
Sewell said factors in Canberra’s office market including stock withdrawals up to 2018 and a limited supply outlook for the CBD, with the only major office project under construction in Canberra being at Tuggeranong, contribute to the attraction of the offering,
“The attractive yield spreads between Canberra and Sydney and the asset’s location in the Civic precinct, which has the tightest prime grade vacancy rate of all monitored CBD office markets in Australia of 4.8% as of 2Q16, also strengthen its value proposition.” Sewell concluded.
Australian Property Journal